Testmarket simulation can be used to predict the market share of a new product before its market introduction and it can provide diagnostic information concerning the product design, packaging, pricing and advertising. This information enables the product manager to take corrective actions before spending large sums on production, distribution and mass advertising, as is necessary for launching a new product. The method is comparatively fast and can maintain secrecy from competitors. This paper will describe the basic principles of TESI, the testmarket simulator of G&I (Nuremberg). It will also deal with special test designs, with methods to attain diagnostic information and with pricing research.
- This could also be of interest